Kite Highlights Publication on Breakthrough in Generating Fully Functioning T Cells from Hematopoietic Precursor Cells by Leading Researchers at the University of California, Los Angeles (UCLA)

Kite Holds Exclusive License to the ATO Technology for the Development
of Renewable Off-the-Shelf T-cell Therapies

SANTA MONICA, Calif.--(BUSINESS WIRE)--
Kite Pharma, Inc. (Nasdaq:KITE)
today highlighted a publication in the latest issue of Nature Methods
that describes pre-clinical findings demonstrating that a novel
serum-free, 3-dimensional cell culture technology, known as the
Artificial Thymic Organoid (ATO) cell culture system, recapitulates
T-cell differentiation. The findings support the potential of ATO
technology to generate off-the-shelf engineered T cells to treat cancer
and other diseases. The research was led by Gay M. Crooks, M.D. at the Eli
and Edythe Broad Center of Regenerative Medicine and Stem Cell Research
at the University of California, Los Angeles (UCLA). Kite holds an
exclusive license to the ATO cell culture technology from UCLA.

The ATO cell culture system mimics the function of the human thymus to
allow differentiation of fully functioning T cells from hematopoietic
stem cells. Importantly, the ATO cell culture system allows engineering
of the T-cell receptor during T-cell differentiation, making the system
potentially suitable for the generation of off-the-shelf engineered T
cells from renewable cell source.

"We congratulate Dr. Crooks and her collaborators on this
ground-breaking research," said David Chang, M.D., Ph.D., Executive Vice
President of Research and Development and Chief Medical Officer of Kite.
"The simplicity and reproducibility of ATO technology offers the
potential to develop renewable, off-the-shelf engineered T cells from
pluripotent stem cell lines. This is a significant breakthrough in
engineered cell therapy."

The publication, "Generation of mature T cells from human hematopoietic
stem and progenitor cells in artificial thymic organoids", was published
online in Nature Methods on April 3, 2017.

About Kite

Kite is a biopharmaceutical company engaged in the development of
innovative cancer immunotherapies with a goal of providing rapid,
long-term durable response and eliminating the burden of chronic care.
The company is focused on chimeric antigen receptor (CAR) and T cell
receptor (TCR) engineered cell therapies designed to empower the immune
system's ability to recognize and kill tumors. Kite is based in Santa
Monica, CA. For more information on Kite, please visit www.kitepharma.com.
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This press release contains forward-looking statements for purposes of
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forward-looking statements. Forward-looking statements include
statements regarding intentions, beliefs, projections, outlook, analyses
or current expectations concerning, among other things: the potential of
the artificial thymic organoid cell culture system to generate
off-the-shelf engineered T cells to treat cancer and other diseases.
Various factors may cause differences between Kite's expectations and
actual results as discussed in greater detail in Kite's filings with the
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Form 10-K for the year ended December 31, 2016. Any forward-looking
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